| June 27, 2017 | "Irreverent, but never irrelevant" | | |  | John Lothian
Publisher
John Lothian News | |
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And It Comes To This
By Jim Kharouf, JLN
No event, until our MarketsWiki Education series, has been hyped the way our Trading Chicago event has been promoted. The good news for those who've gotten the message - several times now - is that our event is tomorrow at the Swissotel in Chicago. You can still sign up here. We also have a limited number of free passes left to distribute. If you'd like to attend, and I know you all do, send me a note and I'll add you to the list. The first 10 names get added.
Trading Chicago, which now has more than 250 guests registered, is a one-day event aimed largely at CTAs, hedge funds, prop traders and asset managers, and will highlight some of the key regulatory, technology and market issues of our day. To see the full agenda, please click HERE. We're excited about the event along with our partners at FOW/Global Investor Group and look forward to seeing you there.
Our next events on the calendar are coming up quickly. Our MarketsWiki Education, World Of Opportunity event in New York is slated for July 11th and 12th. The Chicago series will run July 17th, 19th and 21st. You can see our venues and line-up of speakers HERE. If you have any interns, newcomers on your staff or students who are interested in hearing from top level professionals in our space, please register them by clicking on the registration links on the page link above.
One of the features of the events is between speakers we give the attendees some swag. If you have any extra swag you would like to give away to this target audience, please let John Lothian know. He is our swag-master.
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Regulatory Preparedness: Are We There Yet?
JohnLothianNews.com
"The nature of what firms want to buy in this space has changed dramatically. They don't want an integration project, they don't want a problem. They are really looking for suppliers who can deliver everything in one place  kind of a one stop shop. Trade once, report it everywhere is the ideal." - Collin Coleman, CEO of Abide Financial
As MiFID II implementation looms, firms can take some solace in knowing the general pathway forward, though there are still Q & A's floating around and standards yet to be released. In this video, Christian Voigt, senior regulatory adviser with Fidessa, and Collin Coleman, CEO of Abide Financial, discuss what it's like to be a regulatory reporting vendor in this shifting environment, what it means for U.S. businesses and what people are doing to cope.
From their perspective, MiFID II is an indicator of how much the regulatory reporting field has changed. Now, clients want a holistic solution with the capability to handle more reporting to more sources. (An audit trail requires quite a few breadcrumbs.) And MiFID isn't the only driver. There are a number of other regulations coming into effect in the months before January 3, each of which is not getting as much attention as it likely should due to the spotlight on MiFID II. And that spotlight will only intensify as the deadline nears.
Read the rest and watch the video »
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Discover Why Collateral is the New Performance Driver
BNY Mellon
The global buy-side community finds itself under intense liquidity and funding pressures in 2017. Across the world, financial institutions face new mandates to collateralize OTC derivatives trades, requiring them to source large volumes of highly-rated securities and cash to post as margin. At the same time, bank counterparties - the traditional liquidity providers - are grappling with balance sheet constraints. The pull of these two opposing regulatory forces is making it increasingly challenging for buy-side entities to locate and access the funding and collateral they now need.
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***** Peter Madigan, formerly of Risk.net, is now with BNY Mellon in a writing role. Journalists can become bankers, who knew?
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Bitcoin, Ether Lead Digital Currency Slide From Highs
Alexandria Arnold and Camila Russo - Bloomberg
Coinbase's GDAX exchange agrees to refund flash-crash victims; Chipmakers Nvidia and Advanced Micro Devices down on day
Bitcoin declined as much as 17 percent, while smaller competitor ether continued to slide after experiencing a "flash crash" last week, raising concern about mainstream acceptance of the digital currencies.
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***** I am thinking Robby's ether mining and my disclosure of it put the high in the market. There is a correlation at least.
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Half of High-Skilled EU Workers in U.K. Eye Leaving, Study says
Simon Kennedy - Bloomberg
More than a third of all non-British workers thinking the same; U.K. still popular destination for foreign workers, says study
Almost half of Britain's supply of highly skilled workers from the European Union are considering leaving in the next five years, according to a report by Deloitte LLP.
/goo.gl/82aCyF
****** Highly skilled is defined as going out to lunch for two pints of Guinness and still being able to work in the afternoon.
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World's Biggest Wealth Fund Refuses to Be Silenced; Norway is right to object to companies with few voting rights winning equity-index status.
Mark Gilbert - Bloomberg
Investors are increasingly serious about their environmental, social and corporate governance duties, withholding investment from industries they deem to be damaging the planet or society and using their votes to steer companies onto better paths. But that only works if they have a say in the boardrooms of the companies they help to financeÂa voice that the so-called tyranny of indexing threatens to silence.
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****** Norwegians just won't be quiet! I blame it on too much fish in their diets.
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U.S. Image Suffers as Publics Around World Question Trump's Leadership; America still wins praise for its people, culture and civil liberties
Richard Wike, Bruce Stokes, Jacob Poushter and Janell Fetterolf - Pew Research Center
Although he has only been in office a few months, Donald Trump's presidency has had a major impact on how the world sees the United States. Trump and many of his key policies are broadly unpopular around the globe, and ratings for the U.S. have declined steeply in many nations. According to a new Pew Research Center survey spanning 37 nations, a median of just 22% has confidence in Trump to do the right thing when it comes to international affairs. This stands in contrast to the final years of Barack Obama's presidency, when a median of 64% expressed confidence in Trump's predecessor to direct America's role in the world.
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***** Reputational risk is a real thing for the U.S. and its businesses.
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Google Gets Record $2.7 Billion EU Fine for Skewing Searches
Aoife White - Bloomberg
EU: Google has 90 days to give equal treatment to rival sites; Fine is first from EU ahead of two other Google probes
Google lost its biggest regulatory battle yet, getting a record 2.4 billion-euro ($2.7 billion) fine from European Union enforcers who say the search-engine giant skewed results to thwart smaller shopping search services.
/goo.gl/KBFwjF
****** "Google this" now has a new meaning.
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Monday's Top Three
Monday was market day, when all eyes were on things like gold and, um, ethereum. There hasn't been a more popular story in recent weeks than yesterday's Bloomberg article, Gold Plunges After 1.8 Million Ounces Were Traded in One Minute. Second went to CME's Open Markets piece on the rise of Globex, now in its 25th year, in How Electronic Futures Trading Went Global. Third went to the Wall Street Journal piece Ethereum's Flash Crash Shows Hazards of Trading Cryptocurrencies
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MarketsWiki Stats
103,361,695 pages viewed; 22,568 pages; 206,693 edits
MarketsWiki Statistics
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| Lead Stories | Dark-Pool Clampdown Seen Ensnaring 74% of European Equities
Will Hadfield and Silla Brush - Bloomberg
MiFID rules capping dark-pool trading will affect funds; Limits impacted 94% of FTSE 100 stocks, Rosenblatt found
If fund managers want to keep trading in European dark pools, they will need a big overhaul of their practices before new rules kick in next year.
/bloom.bg/2tbA9vb
Lutnick offers $20,000 per month to trade on new Treasury platform; Offer to market makers aims to avoid fate of other struggling start-up venues
Joe Rennison in New York - FT
Bond market veteran Howard Lutnick is offering $20,000 per month to market makers willing to support his new trading platform for US Treasuries.
/goo.gl/q52n8R
Bank of England tells lenders to increase capital buffers by £11.4bn; 'Pockets' of risk remain, says Financial Policy Committee
Caroline Binham and Gemma Tetlow in London - FT
The Bank of England has told lenders they will need to build a special buffer worth £11.4bn over the next 18 months, as it tries to make banks more resilient to risks including a burgeoning consumer credit sector.
/goo.gl/NpxW1P
Deutsche Bank Wasn't Only 'Mirror' Trader: Russian Central Bank
Evgenia Pismennaya - Bloomberg
Bank of Russia found $13.5 billion in mirror trades in 2014-16; Regulator declines to name other foreign banks seen in trades
Deutsche Bank AG was not the only international lender found to have conducted "mirror trades" to circumvent regulations and send money out of Russia in the last few years, the Bank of Russia said, declining to name other institutions involved.
/goo.gl/E4cr68
Great recession fears as bankers warn next global crash could arrive 'with a vengeance'; Next major recession could be brewing in countries like China, a new report warns
Caroline Mortimer- The Independent
A new financial crisis is brewing in the emerging economies and it could hit "with a vengeance", an influential group of central bankers has warned.
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Nine-in-ten FTSE 100 stocks to hit dark cap in January; New report reveals the majority of stocks across Europe will hit the MiFID II dark trading cap come January 2018, with FTSE 100 hit hardest.
Hayley McDowell - The Trade
Research has found 89% of stocks in the FTSE 100 and FTSE 250 will breach MiFID II's dark trading market-wide cap come January 2018.
/goo.gl/Xqt568
Fixed income experts question use of TCA for best execution; Industry participants gathered in London to discuss the use of TCA to achieve best execution for fixed income.
Hayley McDowell - The Trade
Fixed income participants will face short-term difficulties using transaction cost analysis (TCA) for best execution.
/goo.gl/raJEVQ
A Proposed Bankruptcy for Banks That Will Lead to Bailouts
Stephen J. Lubben - NY Times
At a time when news about Russia, health care, terrorist attacks and horrific fires dominates the headlines, it can be easy to forget that Congress continues to try to undo the regulatory reforms enacted in the wake of the 2008 financial crisis.
/goo.gl/fRChhW
With Crowding in U.S. Market, Activist Investors Look to Europe
Alexandra Stevenson and Michael J. de la Merced - NY Times
Activist investors  money managers who seek to shake up a company's strategy in search of huge paydays  have been growing in size and power in the United States, bending the knees of even the biggest corporate titans.
/goo.gl/wH9DbN
U.S. Image Plummets Under Trump White House, Pew Survey Says
Gregory Viscusi - Bloomberg
Russians and Israelis stand out for liking Trump more; Trump's approval ratings below that of Putin, Xi or Merkel
Donald Trump has been U.S. president for less than six months but it's been enough time to send opinions of American leadership plunging.
/goo.gl/HZe7Ev
There's about to be a showdown between America's biggest players in trading
Frank Chaparro and Matt Turner - Business Insider
Some of the biggest players in trading will be present at the House Financial Services Committee's US Equity Market Structure hearing on Tuesday, and things are likely to get heated.
/goo.gl/ACaUDQ
Best Execution Under MiFID II and the Role of Transaction Cost Analysis in the Fixed Income Markets
Tradeweb via TABB Forum
Fixed income markets are undergoing significant change, both in market structure and liquidity. Impending regulatory reform coupled with an increased focus on greater transparency and efficiency around trading costs are driving demand for performance measurement tools that help investment firms evaluate the quality of their execution and prove best execution.
/goo.gl/EadrAj
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| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | CME Group Inc. Announces Second-Quarter 2017 Earnings Release, Conference Call
CME Group
CME Group Inc. will announce earnings for the second quarter of 2017 before the markets open on Tuesday, August 1, 2017. The company has scheduled an investor conference call that day at 7:30 a.m. Central Time.
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NYSE: Holidays and Trading Hours
NYSE
All NYSE markets observe U.S. holidays as listed below for 2017, 2018 and 2019.
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CBOE Holdings Announces Pricing of Senior Notes Offering
CBOE
CBOE Holdings, Inc. (BATS: CBOE | NASDAQ: CBOE) announced today that it priced an underwritten public offering of $300 million of its 1.950% Senior Notes due 2019. The offering is expected to close on June 29, 2017, subject to the satisfaction of customary closing conditions.
/goo.gl/tDSo8L
London Stock Exchange welcomes AIB to the Main Market
LSEG
London Stock Exchange today welcomes Allied Irish Banks plc (AIB), Ireland's largest retail and commercial bank, to the Main Market following the company's successful IPO. Raising around EUR3 billion, before the exercise of the secondary greenshoe, it is the largest IPO from EMEA to date in 2017 and gives the bank a market capitalisation of almost EUR12 billion. AIB's shares will trade in Dublin and in London enabling the company to access a broad base of international and domestic investors.
/goo.gl/WmQ67e
SGX to report FY2017 results on 27 July
SGX
Singapore Exchange (SGX) is reporting its results for Financial Year 2017 (FY2017) after the market closes on 27 July 2017.
/goo.gl/d3S9v9
Vontobel selects Clearstream as a partner for the hedge fund business; Clearstream intends to optimize trading with third-party hedge funds and custody business at Bank Vontobel; Protection of assets and efficiency are central to the investment fund industry
Clearstream
As a strategic partner for Vontobel, Clearstream Banking is optimizing and consolidating the processing of third-party hedge funds. With Clearstream's Vestima settlement infrastructure, all types of funds, from investment funds to hedge funds, can be processed on a single platform.
/goo.gl/RwmwR6
Nasdaq Holds Second Quarter 2017 Investor Conference Call
GlobeNewswire
Nasdaq (NASDAQ:NDAQ) has scheduled its Second Quarter 2017 results announcement.
/goo.gl/j9QeXg
New bond in the Scale segment: drawing of paragon AG started; The subscription for the paragon AG bond ended prematurely on the same day
Deutsche Börse
Trading start at the Frankfurt Stock Exchange planned for July 5 / DirectPlace supports the placement of the shares
/goo.gl/5ex6PP
Vapiano SE since today in the Prime Standard on the Frankfurt Stock Exchange
Deutsche Börse Cash Market
First prize: 23.95 euros
Vapiano SE (ISIN: DE000A0WMNK9 ) has been listed in the Prime Standard on the Frankfurt Stock Exchange since today. The issue volume of the IPO was around 184 million euros. The first exchange price was 23.95 euros, the issue price was 23.00 euros.
/goo.gl/Guz8dG
ICE files to increase oversight of electronic trading
Julie Aelbrecht - FOW
The US Reg AT rules have been stalled with the US futures regulator since November
/goo.gl/PakBj8
LCH global head of sales Hackett quits firm
Luke Jeffs - FOW
Hackett has resigned as LCH's global head of sales and head of the LSE Group's US arm
/goo.gl/J2cJ5o
The Emperors New Clothes, part 2
David Weisberger - Traders Magazine
The first part of "The Emperor's New Clothes" pointed out the fallacies of IEX's core claims of being "Fair" and "Transparent". In part 2, I will explain several serious issues with IEX's recent paper that they published to demonstrate the execution quality of their exchange. Despite the use of LaTeX software and publishing the paper on SSRN, the paper combines legitimate statistical analysis with unsubstantiated marketing claims. Yet, like most of the rhetoric that emanates from the Investors Exchange, the conclusions seem to get accepted at face value, despite the marketing content.
/goo.gl/ZwGXnt
Probe into allegations against NSE for 'favouring clients' turning out to be a farcical drama
Dinesh Narayanan, ET
What began as an investigation into allegations that India's top stock exchange favoured some of its clients giving them preferential ..
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| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | Itiviti Delivers Multi-protocol Automated Testing for CSE System
Press Release
Itiviti, a world-leading technology provider for the capital markets industry, and the Canadian Securities Exchange (CSE), the modern and efficient alternative for companies looking to access the Canadian public capital markets, have partnered to deliver a state-of-the-art automated testing solution to enable continuous integration testing and defect reporting in the CSE's multi-protocol trading environment.
bit.ly/2tgiYZS
Seven banks to go live with Hyperledger trade finance platform in 2017
Global Trade Review (GTR)
As banks and fintech players gather for this year's Money20/20 conference in Copenhagen, a consortium of seven of Europe's largest financial institutions reveals details on its new blockchain trade finance platform for SMEs. Going live later this year, Digital Trade Chain will be built and hosted by IBM and powered by Hyperledger Fabric 1.0.
/goo.gl/Q8iBLu
Regtech report encourages regulators to innovate and US to participate more in fintech-aided compliance
Neil Ainger - CNBC
A new whitepaper from Innovate Finance's Transatlantic Policy Working Group (TPWG) has recommended that regulators in the U.S. do more to encourage financial technology (fintech) innovation in the regulatory field (regtech) by liaising with their international counterparts more and adopting a national policy that conforms with global norms.
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FinancialTechnology MARKET UPDATE
Marlin & Associates
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Banks' blockchain consortium picks IBM for trade finance platform
By Jemima Kelly - Reuters
Tech giant IBM is building a blockchain-based platform for seven big European banks, including HSBC and Deutsche Bank, that is aimed at simplifying trade finance transactions for small- and medium-sized companies.
/goo.gl/MCe4Z3
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| Politics | | An overview of politics as it relates to the financial markets | Citadel's Griffin Says Trump's 15% Tax Rate Isn't Realistic
John McCormick - Bloomberg
Billionaire hedge fund founder Ken Griffin said President Donald Trump isn't being realistic when it comes to the tax cuts he has proposed, if the nation wants to remain fiscally responsible and deal with its deficits.
/bloom.bg/2ua97ll
The Litigation Storm Around President Trump; The number of suits is less important than the importance of the issues they raise.
Paul Barrett and Dune Lawrence - Bloomberg
Liberal activists are thrilled to be suing President Donald Trump. "The reason you're seeing a proliferation of lawsuits against President Trump is that he brought his lifelong contempt for the rule of law with him to the Oval Office," says Norman Eisen, the chief White House ethics lawyer for President Barack Obama.
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| Regulation & Enforcement | | For more regulatory, visit MarketsReformWiki, our website focused on current market reform efforts. | Would whoever's left at the CFTC please turn on the light?; Lack of resources - and commissioners - becoming increasingly apparent at US regulator
Michael McCaw - Risk.net
Since Timothy Massad stepped down as chairman of the Commodity Futures Trading Commission (CFTC) in January, the regulator has become "frozen in place" - unable to make important decisions or even conduct routine business. With only two of five commissioners in place, the agency was falling behind a market that continues to develop faster every day. So says now-departing commissioner Sharon Bowen, who announced her departure to the Market Risk Advisory Committee on June 21. The regulator's inability to keep up with the market had become "intolerable", she said. She's far from alone. A case in point: commodity companies say the CFTC's recent capital requirements proposals for swap dealers could drive them out of the market.
/goo.gl/TCMBjk
CFTC Acting Chairman Giancarlo to Testify before the U.S. Senate Appropriations Subcommittee Regarding the Commission's FY 2018 Budget Request
CFTC
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Investor Suit Deadlines Tightened by Supreme Court in Lehman Case
Greg Stohr - Bloomberg
Case stems from Calpers' complaint against debt underwriters; Retirement system had opted out of similar class-action suit
The U.S. Supreme Court tightened the deadlines for some securities-fraud suits, throwing out an investor lawsuit in a case stemming from Lehman Brothers Holdings Inc.'s 2008 collapse.
/bloom.bg/2uauOS5
Estates of Madoff's Dead Sons Reach $23 Million U.S. Accord
Bloomberg
The estates of Bernard Madoff's dead sons have reached an agreement with the U.S. government to hand over a combined $23 million to victims of his Ponzi scheme, resolving an eight-year legal battle over the remnants of fortunes they amassed at their father's bogus securities firm.
/bloom.bg/2uazbwG
Best Execution Under MiFID II and the Role of Transaction Cost Analysis in the Fixed Income Markets
TradeWeb - TABB Forum
Fixed income markets are undergoing significant change, both in market structure and liquidity. Impending regulatory reform coupled with an increased focus on greater transparency and efficiency around trading costs are driving demand for performance measurement tools that help investment firms evaluate the quality of their execution and prove best execution.
/goo.gl/QBqJsi
Federal Court in New York Imposes Permanent Registration and Trading Bans against Defendants Gary Creagh and His Company, Wall Street Pirate Management, LLC, and Orders Them to Pay a $125,000 Civil Monetary Penalty
CFTC
The U.S. Commodity Futures Trading Commission (CFTC) today announced that Judge J. Paul Oetken of the U.S. District Court for the Southern District of New York entered an Opinion and Order (Order) against Defendants Gary Creagh and Wall Street Pirate Management, LLC (Wall Street Pirate), both of New York, New York. The Order, entered on May 10, 2017, permanently prohibits the Defendants from registering with the CFTC in any capacity and engaging in any commodity interest trading, and it requires Defendants to pay a $125,000 civil monetary penalty. Also, the court entered a supplemental Order on June 16, 2017, that permanently bans Defendants from trading for themselves or on behalf of any other person or entity.
/goo.gl/69KrGF
ESAs publish AML/CFT Guidelines
ESMA
The Joint Committee of the three European Supervisory Authorities (EBA, EIOPA and ESMA - ESAs) published today its final Guidelines on anti-money laundering and countering the financing of terrorism (AML/CFT).
/goo.gl/9FxRSJ
The Neutral Corner - Volume 2Â2017
FINRA
We publish The Neutral Corner to provide arbitrators and mediators with current updates on important rules and procedures within securities dispute resolution. FINRA believes this newsletter provides its dedicated neutrals with a valuable learning tool that enables them to better serve parties and other participants in the FINRA forum.
/goo.gl/TPBchs
MiFID II: ESMA issues final guidelines on trading halts
ESMA
The European Securities and Markets Authority (ESMA) has issued today its final guidelines on trading halts under the Markets in Financial Instruments Directive (MiFID II).
/goo.gl/XR9yT7
Sebi cracks down on fake stock tips; Writes to Trai, Mumbai Police to catch unauthorised SMS senders
Shrimi Choudhary - Business Standard
The Securities and Exchange Board of India (Sebi) has sought help of the Telecom Regulatory Authority of India (Trai) to counter the menace of fake investment tips being sent by unknown entities claiming to be from top domestic brokerage houses like Motilal Oswal and HDFC Securities. These brokerages say they aren't the ones sending the messages and their names are being misused. In a recent communication, the market regulator requested Trai to develop "special software" to restrict such mobile messages.
/goo.gl/bVfuX7
UK wealth managers accused of misleading investors; Fee disclosures also described as shocking and completely unrealistic
Madison Marriage and Hugo Greenhalgh - FT
UK wealth managers have been accused of deliberately misleading investors over fees and performance expectations, prompting calls for an industry investigation by regulators.
/goo.gl/5wLWri
Appeals Court Deadlocks Over Challenge to SEC's In-House Courts; Supreme Court likely to be asked to decide constitutionality of agency's process for picking judges
By Dave Michaels - WSJ
A federal appeals court said Monday that it was deadlocked on a case involving the Securities and Exchange Commission's in-house justice system, an outcome that opens the door for the Supreme Court to resolve the dispute.
/goo.gl/jRauhS
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| Investing & Trading | | Today's top stories from equities, indices and FICC (fixed income, currencies and commodities) | Quincy Jones Has 27 Grammies, 4 Platinum Records And An ETF
Owen Davis - Dealbreaker
How does a legendary record producer top off a career that did more to shape modern music than any other influence in the twentieth century, with credits ranging from Count Basie to Michael Jackson to Frank Sinatra? One option, apparently, is to package a bunch of stocks from a notoriously profit-scarce industry into an ETF and tack his name on it.
/goo.gl/raSX5B
ETFs drive stock-market demand as buybacks slow: Goldman
William Watts - MarketWatch
Exchange-traded funds are driving demand for stocks as the pace of stock buybacks slow, said analysts at Goldman Sachs.
on.mktw.net/2uaq8vL
Russell Recon 2017: The tech takeover
Wesley Wynn, director of global and US benchmark products - FTSE Russell Blog
The annual reconstitution day for the Russell US Indexes is usually a time for reflection. This is the time of year when the Russell US Indexes are rebalanced to ensure accurate representation of the market and its size and style segments. The process of rebalancing often reveals a larger picture of the trends occurring in the market and serves as a reminder as to why this process is so important. As the dust settles around this year's reconstitution, it appears that the technology sector is fortifying its position among the top constituents in the Russell US Indexes in terms of size based on market cap.
/goo.gl/TiDBmJ
Robert Soros Is Stepping Down as President of Soros Family Office
Bloomberg
/bloom.bg/2uazW8G
Anxious Investors Try to Hedge Against a Big Selloff, Even as Good Times Roll; Fears are growing over the potential for slowing growth, rising oil prices and mistimed rate cuts
Ira Iosebashvili - WSJ
Stock volatility is near an all-time low and corporate profits have bounced back from a year ago, but investors are increasingly moving to protect themselves from big swings in financial markets.
/goo.gl/mxigNB
Hedge Fund Bosses Make the Case for Humans
By Saijel Kishan - Bloomberg
Intuition, imagination, emotion are an edge, fund managers say; Computers can't yet make big decisions, firm tells its clients
Humans won't be obsolete in this lifetime.
/goo.gl/qy4xGf
Go Short on American Stocks Says This $500 Billion Fund Firm
By Adam Haigh and Lu Wang - Bloomberg
AllianceBernstein is betting against growth stocks, buys value; Firm's multi-asset solutions team favors emerging markets
Investors should bet against U.S. equities because they'll continue to lag behind emerging-market peers during the remainder of the year, according to AllianceBernstein LP.
/goo.gl/GjRWwo
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| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | JPMorgan Turns Bullish on Future of Global Investment Banks
Jennifer Surane - Bloomberg
Goldman Sachs, Morgan Stanley take top spots in firm's ranking; U.S. investment banks 'better managed than ever,' analysts say
Four years after questioning whether global investment banks would survive the regulatory scrutiny unleashed after the financial crisis, JPMorgan Chase & Co. analysts are now singing a different tune
/bloom.bg/2uaHY1I
Soc Gen combines electronic and high-touch trading teams; Move to combine teams was made in response to client demands for more integrated trading services.
Hayley McDowell - The Trade
Societe Generale has completed its move to combine its electronic and high-touch trading teams in a bid to meet client demands for fully integrated trading services.
/goo.gl/yST7nt
U.K. Banks Brace for $14.5 Billion Capital Demand From BOE
Stephen Morris and Silla Brush - Bloomberg
Countercyclical capital buffer seen rising to 1% in November; BOE cites risk of consumer-credit growth, Brexit in decision
The Bank of England plans to increase capital requirements for U.K. lenders by 11.4 billion pounds ($14.5 billion) to tackle risks posed by the recent rapid growth in consumer credit and prepare for the uncertain outcome of Brexit talks.
/goo.gl/7NEvDt
Instinet Names New APAC Chief
Finews Asia
Nomura subsidiary Instinet appoints from within for its Chief Executive Officer of Asia Pacific. The equity execution services arm of Nomura announced that it has appointed Stuart Knowling as CEO of Instinet Asia Pacific (APAC) based in Hong Kong.
/goo.gl/KF3vmD
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| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | One Pension Fund Manager Is Going Against the Grain
Yuko Takeo and Nao Sano - Bloomberg
In the $870 billion world of Japan Inc. employee pension funds, he's known as the unusual idealist who's long danced to his own tune.
Hiroichi Yagi filled the Secom Corporate Pension Fund with stocks when his peers hid in bonds, considering it his duty to support Japanese equities. He embraced environmental, social and governance investing as a way to reduce volatility. And he signed Japan's stewardship code for institutional investors right at the start, making Secom the only corporate pension fund outside of financial firms to accept the voluntary standards.
/bloom.bg/2ua8Rmk
Clogged oil arteries slow U.S. shale rush to record output
David Gaffen - Reuters
A gallon of gasoline that allows a driver on the U.S. East Coast to travel about 25 miles has already navigated thousands of miles from an oil field to one of the world's largest fuel markets.
reut.rs/2tbdbEG
Former Brazilian finance minister Palocci sentenced to 12 years in prison
Reuters
A Brazilian court on Monday sentenced former finance minister Antonio Palocci to 12 years in prison for corruption and money laundering in the country's massive corruption probe known as "Operation Car Wash."
reut.rs/2uaaq3G
MSCI Already Talking About Adding More Chinese Stocks; Index provider could admit 195 midsize companies in addition to the 222 announced last week, CEO says
By Gregor Stuart Hunter - WSJ
Less than a week after its landmark decision to include Chinese stocks in its key benchmarks, index provider MSCI Inc. MSCI -0.48% is considering nearly doubling the number of stocks it admits.
/goo.gl/ynojFc
Hostage to China's InsecurityÂIts Markets; Beijing's fear of market forces means MSCI inclusion of Chinese stocks is likely to disappoint
By Andrew Browne - WSJ
At last, Chinese stocks have gained a measure of global respectability.
/goo.gl/LjgtPW
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| Brexit | | Financials stories regarding the decision of the United Kingdom to leave the European Union | The Treasury's economic models have grossly overestimated the cost of Brexit
Graham Gudgin - City AM
Now that negotiations have started on the UK's exit from the EU, it is more important than ever to make a good judgement on the likely economic costs of leaving the Single Market and Customs Union.
/goo.gl/koyt3h
Can the City Survive?
Satyajit Das - Bloomberg
Ever since Britain voted to leave the European Union, analysts have debated the City's fate. In 2016, the British financial services sector employed over one million people (3.1 percent of all U.K. jobs) and contributed around 7.2 percent of the U.K.'s total gross value added, just over half of it from London. Any threat to the sector -- and to London's place as arguably the leading global financial center -- would be a major blow.
/goo.gl/kdtbWK
Nomura to establish entity in Frankfurt for EU access; Nomura has applied for a license in Germany to operate a new entity following the UK's departure from the EU.
Hayley McDowell - The Trade
Asian investment bank Nomura has confirmed it will establish a new entity in Frankfurt following the UK's decision to leave the EU.
/goo.gl/arRFs1
Business groups say UK's plans for EU nationals lack clarity; Employers say proposals would lead to a new administrative burden
Sarah Gordon, Business Editor - FT
Business groups responded on Monday with frustration to the government's proposals on EU citizens' rights post-Brexit, which they said lacked the clarity employers needed and would lead to a big increase in the administrative burden on companies and individuals.
/goo.gl/B9dy1o
U.K. Uses Newspaper Pages to Reassure EU Citizens on Brexit
By Alex Morales - Bloomberg
Brexit Secretary David Davis writes op-eds for EU newspapers; Britain aims to quell uncertainty for EU migrants, Davis says
The British government reached out to European Union voters directly through local media in a bid to reassure them that the rights of their relatives and friends in the U.K. will be protected after Brexit.
/goo.gl/pXWKCh
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| Miscellaneous | | Stories that don't quite fit under the other sections | Stephanie Flanders swaps JPMorgan Asset Management for Bloomberg
Fareed Sahloul - Financial News
Stephanie Flanders, the former BBC economics editor who left to join JPMorgan Asset Management in 2013, is to lead a new economics desk at Bloomberg.
The news and information group has decided to bring its team of economics journalists in Bloomberg News under the same roof as its economists, at its research arm Business Intelligence.
bit.ly/2u9RTEI
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